AU742738B3 - A method to influence consumer purchasing decision making - Google Patents

Description

AUSTRALIA

Patents Act 1990 COMPLETE SPECIFICATION FOR A PETTY PATENT Name of Applicants: Actual Inventors: Address for Service: Invention Title: Damien Jeffrey Lugg and Kirsten Jacquand Molnar As above CULLEN CO., Patent Trade Mark Attorneys, 239 George Street, Brisbane, QId. 4000, Australia.

A Method to Influence Purchasing Decision Making Consumer The following statement is a full description of this invention, including the best method of performing it known to us: A METHOD TO INFLUENCE CONSUMER PURCHASING DECISION

MAKING

FIELD OF THE INVENTION This invention is directed to a method which may comprise a marketing program to create and to enhance wealth for small, medium or large business entities, by influencing consumer's purchasing decisions. This may be through corporate image development and brand strengthening in the marketplace. The invention is also directed to a method to create a network of business entities which band together to take advantage of bulk buying power under an association with a program coordinator.

BACKGROUND ART One of the biggest challenges for a business (that is a provider of goods and/or services) is to promote customer loyalty. In the absence of customer loyalty, a business can survive only by providing goods and/or services at the cheapest possible price (which reduces profit), or by being able to provide a unique product. In the vast majority of cases, a business is not able to provide a unique product as most products can be copied or imitated. This includes tangible products such as goods, but can also include service products.

One way to promote a business presence in the local community is through advertising. While advertising is effective, a difficulty with it is its cost, and that most consumers are not loyal to a business merely because the business advertises.

Consumer feedback provides extremely valuable information to a business. Negative consumer feedback must be attended to and overcome immediately in order to prevent erosion of market share in the local area.

Positive feedback has great value in allowing the business to promote or strengthen the parts of the business activity which provides positive consumer feedback. It is well-known and established that most consumers do not naturally provide feedback to a business. Unfortunately, negative feedback is often the only feedback which is given to the business, which while having some value, does not provide a balanced feedback mechanism to the business.

All businesses are aware that most consumers, once dealing with a business for the first time, will usually continue to deal with that business unless the business provides extremely poor service. For this reason, it is essential that some mechanism or means is developed to guide a consumer to a preferred business in the first instance. It is found that once a consumer has an initial dealing with a business (electrician, plumber etc), the consumer will often continue to deal with that business notwithstanding that other businesses may advertise slightly cheaper rates.

OBJECT OF THE INVENTION It is an object of the invention to provide a method for influencing consumer purchasing decisions and which may overcome at least some of the abovementioned disadvantages.

In one form, the invention resides in a method for influencing consumer purchasing decisions comprising: identifying a Focus Business Identity FBI, developing a Central Communication Piece CCP which bears the name or identifying details of the FBI, contacting local consumers with the CCP, including material in the CCP which is relevant to the local consumers to captivate consumer interest and which is at least partially complementary to the activity of the FBI, providing a consumer feedback means, or a consumer response mechanism, CFM associated with the CCP to provide consumer feedback, analysing the consumer feedback for useful information, providing the useful information to the FBI, providing a web site for the FBI which at least partially emulates the CCP and which has more information of the FBI, and where details of the web site are provided in the CCP to guide the consumers to the web site, providing a consumer loyalty program CLP, and inviting the consumers to join the CLP, inviting businesses with a business presence in the local consumer area to join a network to become network business NB and to provide discounts to consumers in the CLP, having a Program Coordinator PC run the CLP and the network, and providing identification means to allow consumers in the CLP to identify themselves to a NB to obtain a discount.

The focus business identity may be a business which has a business presence in the area of the consumers. The focus business identity may be an entirely local business, or may be an Australia-wide or even an international business which has business dealings in the consumer area.

The business may be a service provider such as an accountant, or may be a provider of goods. The Focus Business Identify is typically invited to join the program for a fee. Once the business identity has joined the program, it is typically identified as a Focus Business Identity (FBI).

A Central Communication Piece (CCP) is developed which bears the name, or identifying details of the FBI. The CCP may be a newspaper or newsletter and the like. The newspaper or newsletter typically bears the name of the FBI on the masthead, or somewhere prominent making it clear that the FBI is the focus business identity. Put differently, the CCP may consist of a branded newsletter or branded newspaper branded with the name of the FBI.

Local consumers are contacted with the CCP. This may be in the form of letterbox drops, direct mailout, or as an accompaniment to a purchase at the point of sale. Other means of contacting local consumers with the CCP are also envisaged. The local consumers may include consumers in a geographical area which forms part of the method. However, local consumers may include consumers which are outside the geographic area but which may purchase at least some goods or services in the geographical area. The geographical area may be small, medium or large and may include a city, a state, an entire country and the like. The term "local consumers" is not to be construed narrowly. For instance, if the FBI is one which has business throughout a large geographic area, the term "local consumer" should include all consumers which are able to conduct at least some business with the FBI.

The CCP includes material which is relevant to local consumers to captivate consumer interest and which is at least partially complimentary to the activity of the FBI. For instance, the CCP may include local events and information along with advertising or material from local, state-wide and national organisations. The CCP may contain information pieces giving prominence to local personalities and consumers. In an embodiment, the CCP may include articles containing financial advice sponsored by a bank, home renovation advice sponsored by a builder, health and fitness advice sponsored by a local gym or health practitioner, recipes using fruit and vegetables from a local grocer. It should be appreciated that these articles are given as an embodiment only and are not to be construed as being limiting in any manner to the method.

All material in the CCP should be at least partially complimentary to the activities of the FBI. Therefore, if the FBI is an accounting practice, the CCP may contain articles about financial advice which are proactive and complimentary to the use of the services of an accountant, and particularly an accountant in the local area. Similarly, and in an embodiment, a real estate agency may ask a mortgage provider to submit a small article containing financial advice.

The method provides a Consumer Feedback Means (or a Consumer Response Mechanism) (CFM) which is associated with the CCP to provide consumer feedback.

The CFM may comprise any type of means which will promote and encourage consumer feedback. The CFM may comprise a competition giving out prizes. The competition typically will require participating consumers to provide some information about themselves. It is envisaged that other types of consumer feedback means may be provided. In an embodiment, the competition may require consumers to provide their name, address, phone number, social preferences, drinking habits, certain likes and dislikes and the like.

The CCP may include other means to encourage consumer acceptance. These means may comprise discount vouchers to generate consumer interest and to make the CCP more valuable to readers. Local business entities may be encouraged to provide coupons for discount on goods or services. It is found that having voucher advertising in the CCP assists in the CCP being retained by the consumer for a longer period of time.

The information obtained via the consumer feedback means can be analysed for useful information, which is information useful to the FBI and PC. The information may be analysed by a separate entity that will compile and extract useful information from the consumer feedback data. This information can be returned to the PC to on sell, for instance in the form of a consumer data base, to the FBI, for instance on a computer disk, the contents of which can be downloaded to the business customer database.

The method includes providing a web site or web presence for the FBI. It is found that a web site has the power to encompass and support all the marketing tools of the business. This can be the point where basic communication and specific promotions come together to allow consumers to explore each facet of the FBI in their own time. The CCP (for instance newsletter/paper) may be instrumental in guiding consumers to the web site should they require further information about the FBI and what the FBI has to offer.

The web site typically provides more information of the FBI.

Details of the web site are typically provided in the CCP in such a manner to encourage consumers to go to the web site. Typically, images derived from the CCP should be accessible on the web site and consumer feedback should also be welcomed. The web site will display the masthead of the CCP which may assist in cementing the brand name of the FBI in the mind of the consumer.

Typically, the CCP and the web site lend themselves to advertising to support the promotion vehicle. With the support of complimentary business entities such as those who supply the inputs of the FBI, these strategies can be achieved at a minimum of cost.

The method provides a Consumer Loyalty Program CLP. The method also invites the consumers to join the CLP. This may be achieved via the CCP and/or the web site or by other means.

The method may also have businesses with a business presence in the local consumer area able to join a network to become a Network Business NB. This may be achieved by any suitable means to contact and invite businesses to join the NB. Once a business is part of the NB, it is envisaged that the NB will provide some form of discount or some form of value adding to consumers part of the CLP.

The network of businesses can be seen as a value added network VAN. This value added network of businesses is extremely attractive to consumers.

Identification means are provided to allow consumers in the CLP to identify themselves to a NB to obtain a discount or some form of value added service. The identification means may be in the form of a small plastic card which may display the company logo and a logo of the value added network. This card may be issued to a consumer upon joining the CLP. The small plastic card can also be known as the Value Added Network Card (VANC). It is envisaged that this card provides an effective means of gathering consumer information and also aids in the strengthening of the corporate image of the FBI.

A Program Coordinator PC oversees and runs the network.

The basis of the program is that it can allow consumers to obtain discount using their value added membership when they shop at a business which is a member of the value added network. Consumers may receive discounts with any business that is a member of the network.

Consumers which are part of the CLP are typically required to retain any receipt received when a purchase is made from a value added network member business. When the receipt, along with the identification means is presented, a discount can be obtained from any member business.

Suitably, all members of the VAN are licensed to use the value added logo on any advertising material to promote their network membership which is supplied to them by the PC, typically on a computer disk. A fee may be payable for use of the logo. Value added members are able to promote their membership via any medium they wish, whether it be television, radio or press, and they may use the logo on any promotional material which is distributed.

BRIEF DESCRIPTION OF THE DRAWINGS Figure 1 illustrates a flow chart representation of the method.

BEST MODE Referring to Figure 1, there is illustrated a comprehensive flow chart representation of the method.

Advertisers Gaining Information Databases A and B Potential and current advertisers contact details are collected and held in a database compiled by the publisher or the marketing program coordinator. The central database is to be segregated into two further databases as follows: Database A contains businesses who have agreed to or previously advertised in any of the branded papers.

Database B contains businesses who have been approached by a salesperson but declined to advertise.

Each of the above groups will be sent a different newsletter by the Publisher or Program Coordinator; one to sell the benefits of advertising and the Value Added Network (potential advertisers) and the other to cement the value of the Network and the branded paper (current advertisers).

Leads for advertising salespersons can be generated by the focus company, the company whose name appears on the paper masthead). Sales lead generation is made simple for the focus company as the Marketing Program Coordinator provides the focus company with a standard form (see attachment Allowing the focus company to suggest advertisers ensures the competing products and services do not appear in the publication.

Communicating with Advertisers Newsletter I Advertising leads are collated into a central database held by the Publisher/Program Coordinator, who then makes contact with potential advertisers. These potential advertisers will receive a newsletter highlighting the long-term benefits of advertising in the branded newspapers. Pivotal to the communication success of this newsletter is the successful promotion of anticipated benefits resulting in increased market share and wealth for advertisers.

Extending Special Offers to Advertisers/Potential Advertisers Newsletter 2 While consumers benefit from the Value Added Network by receiving discounts when shopping at member outlets, participating businesses also benefit individually through increased buying power ensuring the cost of production inputs are reduced.

A complementary newsletter is forwarded to those who advertise in the branded papers which outlines discount offers available to them based on the reality of bulk buying power. These discounts are designed to reward businesses for advertising in the branded papers and to further add value to their operations. Discount offers can include: Letterhead (for access to any printed products at discounted rates) made possible through bulk buying. This is particularly beneficial to small business that may experience cost inefficiencies when purchasing custom made printed material such as business cards due to their lack of volume when ordering.

Web site development.

Marketing plans.

Strategic Marketing.

Business plans.

Access to other members of the value added network.

As with the first newsletter to be forwarded to advertisers, the second newsletter will include information about the objectives and benefits the branded paper, and in particular the Value Added Network. Crucial to the success of this particular type of advertising via the branded papers is the fact that there will only be one type of service provider in each paper, and advertising will be well laid out to catch attention. For example, only one builder will be allowed to advertise and only one hairdresser, one plumber, one doctor, etc. Unlike traditional newsletters/papers, advertisers will complement one another rather than compete for the same business in small and often difficult to read columns.

The concept of value adding will be strongly marketed in both newsletters with emphasis on a possible adjustment in the way retailers and service provider's deal with consumers. By understanding consumers better, members of the Value Added Network have the potential to improve their goods and services in tune with the needs and expectations of consumers.

All newsletters will bear the Value Added Network logo, and each of the branded papers will also promote the logo. The loyalty program should be launched when the branded papers/newsletters are on accepted advertising medium in the community. Soon after the loyalty program is launched, the logo will become an easily recognisable symbol of value and benefit to consumers and businesses alike. Each time a consumer utlises the value added card at a network member's business, brand recognition is further enhanced and consumer preference is swayed towards that business.

During the Value Added Network loyalty card launch period, promotional literature highlighting benefits is available from Market to Market Communications.

Embracing the M2M Marketing Program will provide a business with an effective long term advertising mechanism which should ensure repeat business from an evolving customer base. Production costs should also be positively affected through discounts received by business from the Value Added Network as a result of increased bulk buying power. Perhaps most importantly, consumers can be exposed to the human side of the business with the help of the branded papers that promote the entity as a caring (and well known) member of the local community.

All of the above steps will ensure a win-win situation for both a business and its consumers with a multitude of mutual benefits and cost savings that can only improve over time.

It should be appreciated that various other changes and 11 modifications may be made to the embodiment described without departing from the spirit and scope of the invention.

Claims (3)

1. A method for influencing consumer purchasing decisions comprising: identifying a Focus Business Identity FBI, developing a Central Communication Piece CCP which bears the name or identifying details of the FBI, contacting local consumers with the CCP, including material in the CCP which is relevant to the local consumers to captivate consumer interest and which is at least partially complementary to the activity of the FBI, providing a consumer feedback means, or a consumer response mechanism, CFM associated with the CCP to provide consumer feedback, analysing the consumer feedback for useful information, providing the useful information to the FBI, providing a web site for the FBI which at least partially emulates the CCP and which has more information of the FBI, and where details of the web site are provided in the CCP to guide the consumers to the web site, providing a consumer loyalty program CLP, and inviting the consumers to join the CLP, inviting businesses with a business presence in the local consumer area to join a network to become network business NB and to provide discounts to consumers in the CLP, having a Program Coordinator PC run the CLP and the network, and providing a first identification means to allow consumers in the CLP to identify themselves to a NB to obtain a discount, (m)providing a second identification means by a first network business to identify the consumer to a second network business in order to obtain a discount.

2. The method of claim 1, wherein the CCP comprises a newsletter or newspaper and the identification means comprises a card.

3. The method of claim 1 or claim 2 substantially as hereinbefore described. 13 DATED this 5 t h day of November 2001 Damien Lugg and Kirsten Jacquand Molnar By his Patent Attorneys CULLEN CO.